The Retail Banking Market Investigation Order was violated by Monzo between May 2021 and March 2022, prompting the Competition and Markets Authority (CMA) to take this most recent action.
Every customer must obtain copies of their transaction history when they cancel their accounts, according to the Order, which serves as significant proof if they decide to apply for a loan or mortgage elsewhere.
Despite having disclosed a similar breach the previous year, the bank informed the CMA that it had neglected to send transaction histories to over 13,000 customers.
Since then, Monzo has been in touch with all impacted users and offered them a copy of their transaction history.
Because of this, the CMA has given Monzo enforceable instructions requiring it to ensure that this doesn’t happen again and to evaluate its processes with a third party.
If Monzo doesn’t follow the instructions, the court will be able to enforce them.
The early adjustments made by Monzo are detailed below, including:
By adding new auto-alerts, employees will be informed when the system fails to provide clients with transaction histories.
Keeping an eye on cases to make sure departing consumers get their transaction history creating new processes to make sure the Order is followed.
Senior Director of the CMA, Adam Land, commented:
It’s just unacceptable for a large bank like Monzo to consistently let down its clients by breaking unambiguous standards.
A record of your financial transactions can serve as crucial evidence needed to obtain a loan or mortgage, therefore Monzo’s refusal to give these put thousands of clients at undue risk.
Customers shouldn’t experience this problem going forward thanks to the improvements the bank has been mandated to undertake.
We’ll keep an eye on things to make sure the right procedure is followed.